On October 27, 2015 Novartis reported strong core margin expansion (cc) and continued to strengthen the pipeline in Q3; on track for full-year guidance (Press release, Sandoz, OCT 27, 2015, View Source [SID:1234508300]).
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Solid growth (cc[1]) in Q3 sales, core operating income, core EPS for continuing operations[2]
Net sales were USD 12.3 billion (-6%, +6% cc)
Operating income was USD 2.2 billion (-18%, +2% cc)
Core operating income was USD 3.5 billion (-3%, +14% cc)
Core operating income margin improved 2.2 percentage points (cc)
Net income declined mainly due to Q3 provision for conditional settlement in principle of specialty pharmacies case (slightly below USD 0.4 billion)[3] and prior-year gain from sale of Idenix shares
Core EPS was up 14% (cc) to USD 1.27 (-1% USD), and free cash flow[1] was USD 2.8 billion (-11% USD primarily due to currency)
Strong USD negatively impacting sales by -12% and core operating income by -17%
Strong performance of Pharmaceuticals and Sandoz more than offset weakness at Alcon
Alcon growth acceleration plan development underway and will be reflected in 2016 guidance given with 2015 full-year results
Strong innovation momentum and progress on new launches continued in Q3
Entresto received positive CHMP opinion and Swissmedic approval
Tafinlar + Mekinist received EMA approval and FDA priority review in BRAF V600+ melanoma
New data on Cosentyx showed sustained efficacy in psoriasis patients after three years
Progress continued in immuno-oncology with acquisition of Admune Therapeutics (IL-15), licensing agreements with XOMA (TGF-beta) and Palobiofarma (adenosine receptor)
Neuroscience pipeline was strengthened with Amgen partnership for BACE and migraine portfolio; pending acquisition from GSK of ofatumumab rights in multiple sclerosis
Sandoz filing for biosimilar etanercept was accepted by FDA
Growth Products continued to drive Q3 performance and rejuvenate portfolio
Growth Products[4] grew 14% (USD) to USD 4.2 billion, or 34% of net sales
Cosentyx launch off to strong start in US; Entresto approved and launched in US
Outlook 2015 for continuing operations confirmed
Continuing operations net sales expected to grow mid-single digit (cc); core operating income expected to grow ahead of sales at a high-single digit rate (cc)